1. The beta of Stock C is 0.6 (indicating that its returns rise when returns on most other stocks fall). If the risk-free rate is 6.2 percent and the expected rate of return on an average stock is 10.8 percent, what is the required rate of return on Stock C?

   	a.	12.68%
   	b.	8.96%
   	c.	3.44%
   	d.	2.76%
   	e.	0.28%